Consider the following six months of returns for two stocks and a portfolio of those two stocks:

${?}^1($Click the icon to view the monthly returns.$)$

Note: The portfolio is composed of $50\%$ of Stock A and $50\%$ of Stock B$.$

a$.$ What is the expected return and standard deviation of returns for each of the two stocks?

b$.$ What is the expected return and standard deviation of returns for the portfolio?

c$.$ Is the portfolio more or less risky than the two stocks? Why?

a$.$ What is the expected return and standard deviation of returns for each of the two stocks?

The expected return of Stock $A$ is

$\%.($Round to one decimal place.$)$

The expected return of Stock $B$ is

$\%.($Round to one decimal place.$)$

The standard deviation of Stock $A$ is

$($Round to five decimal places.$)$

The standard deviation of Stock B is

$($Round to five decimal places.$)$

b$.$ What is the expected return and standard deviation of returns for the portfolio?

The expected return of a portfolio composed of $50\%$ Stock A and $50\%$ Stock B is

$\%.($Round to one decimal place.$)$

The standard deviation of a portfolio composed of $50\%$ Stock A and $50\%$ Stock B is

$($Round to five decimal places.$)$

c$.$ Is the portfolio more or less risky than the two stocks? Why? $($Select the best choice below.$)$